How to use NPS to reduce your income tax this year2 min read . Updated: 15 Sep 2019, 08:57 AM IST
- The government has increased the income tax exemption limit on withdrawal from NPS
- An employee can deposit contribute towards NPS directly or route contribution through the employer
You should start planning for income tax if you have not done so far. Among other options, you could closely look at NPS or National Pension Scheme to save income tax. If you don’t have an NPS account yet, it can be opened online. To promote NPS as a vehicle for savings towards retirement, the government has been gradually increasing tax benefits on the pension scheme. For example, in this year’s Budget, the government increased the income tax exemption limit on withdrawal from NPS. 60% of withdrawal from NPS on retirement, or reaching the age of 60, is now tax-free, as compared to 40% earlier.
Select your Category